SPECIALIST lender Together has provided a multi-million pound loan for the purchase of an 850 bed portfolio of student accommodation across Aberdeen and Dundee.
Each property offers students free Wi-Fi, all appliances, 24/7 maintenance support, free parking, contents insurance, and is inclusive of all utility bills. There is also a committed team of staff on site offering student support.
Additionally, 20 of the rooms have been offered to Robert Gordon University undergraduates as part of a donation through the Ardmuir Access Scholarship opportunity.
Richard Thom, co-owner of ATK Property Group with The Ogilvie Group said: “Demand for student beds is at an all-time high across the UK, and this is especially true of Aberdeen and Dundee; both of which have prestigious universities. They attract students from all over the world, but there has been a particular increase in the number of domestic students selecting Scotland as their place to study.”
According to Savills’ 2023 UK Purpose-Built Student Accommodation Spotlight report, university acceptances have been steadily increasing, but there has been a reduction in the number of private HMO flats available, increasing the demand for purpose built student accommodation.
Richard explained that Aberdeen in particular has undergone considerable change in recent years.
“The north east economy has moved away from its historic focus on oil, with significant investment now being seen in the renewable energy sector. This is an exciting time to be investing in Aberdeen where the underlying PBSA supply and demand dynamics are so strong.”
Richard turned to specialist lender Together, founded in 1974, to secure the finance he needed. Together, which provides commercial and personal loans and has a loan book of over £6.2 billion, took on the complex deal, allowing ATK Property Group to purchase the portfolio.
Richard said “This was quite a complicated funding deal, Together were brilliant to work with the whole way through; they were always on hand to deal with any issue that arose in a sensible and straightforward manner, and we have a great relationship with them.
“The buildings are already well run, and have a skilled, dedicated and experienced team of staff, so there will be no need for me to change any of the day-to-day running of the accommodation”
Steven Clark, Corporate Relationship Manager at Together, said: “It’s worrying to see so many students across the UK having their education affected due to the lack of a home during their time at university. At Together, we are incredibly passionate about supporting investors looking to enter the market – and Richard is the perfect example of this.
“We hope to work with Richard again in the future, and to continue supporting the student accommodation sector across Scotland and the wider UK.”